The parties in this case have agreed to a settlement. The Court held a fairness hearing to consider final approval of the proposed settlement on Jan. 27, 2014.
Hagens Berman Sobol Shapiro served as co-counsel in a case against American Equity Investment Life Insurance Company that claims the company knowingly engaged in an unethical and fraudulent scheme targeted towards senior citizens.
The lawsuit alleges American Equity exploits customers' fears of outliving their assets and pushes them into a deferred annuity plan that ties up their investments and savings for 10 to 20 years. These accounts carry large surrender charges and create complications for loved ones dealing with estates when family members pass.
The lawsuit further alleges that American Equity sells these plans through a network of marketing and sales agents using fraudulent and deceptive sales tactics.